What is Reseller Hosting? How Do I Become a Hosting Reseller?

Have you heard the term ‘reseller hosting’, but unsure what it entails? You might already be familiar with hosting, especially if you operate your own website. Well reseller hosting, as you’d expect by the name, is an offshoot from standard hosting. Here’s a close look at the system:

Reseller hosting described

In summary, reseller hosting is the process of a business selling website space to other companies or individuals. The ‘reseller’ part of the name comes from the fact that the host reseller purchases a large quantity of bandwidth and server storage space from a relevant data provider. Think of the reseller host being essentially a middleman for web space.

So what’s the point of the reseller? Why doesn’t the host just, you know, sell directly to businesses/individuals that need the website space? Well now contemplate the reseller as a wholesaler of sorts. They buy a bulk load of bandwidth/server storage space at a reduced price from the host, which accomplishes two things. Firstly, it allows the host company to shift a large quantity of product fast. Secondly, the reseller still has room to make a profit of their own.

It’s not all straightforward for a hosting reseller, however. They typically become responsible for administration aspects of a business or individual’s website. Although it is possible for the reseller to supply their customers with a handy control panel, which allows them to do any admin-related changes from their end.

The steps to becoming a hosting reseller

Now you know what it entails, you might be wondering how to go about turning a profit with reseller hosting. Well before you start envisioning those stacks of cash in your hands, there are numerous facets to consider and steps to take.

To start with, you need to gauge how to price your hosting packages. It only takes a quick Google search to see there are thousands of businesses in the hosting game – whether they’re a global company or a bedroom operation. They’ll also offer many different features, from cheap web hosting to round-the-clock customer service, which are hard to compete with when you’re only getting out of the gate with your venture. As a result, check how much the competition are charging for their services, and then price competitively against them – preferably even undercutting them to standout even more.

If you have an existing client base, this can be a great advantage when starting a reseller hosting business. If you run, say, a web developer/designer business – something which has clear ties to hosting – then the reseller route is an ideal way to upsell to past, present and future clients.

Are you targeting a local customer base? If so, you should lease local server space. After all, if your target market is the UK, it would be illogical to have a server situated in Australia. This would only hurt the overall service you provide.